TLDR
- TSMC (TSM) currently has an average brokerage recommendation of 1.42 on a 1-5 scale, with 9 out of 12 analysts giving it a Strong Buy rating
- Wall Street analysts show 75% Strong Buy and 8.3% Buy recommendations for the stock, indicating strong bullish sentiment
- Zacks Rank assigns TSM a #3 (Hold) rating based on unchanged earnings estimates of $9.83 for the current year
- Jim Cramer called TSMC a “national treasure” and praised its balance sheet as better than the US government’s
- The stock gained 0.79% on Monday with analysts expecting it could have risen more after Oracle’s earnings report
Taiwan Semiconductor Manufacturing Company received strong backing from Wall Street analysts this week. The chipmaker holds an average brokerage recommendation of 1.42 on a scale of 1 to 5.
This rating falls between Strong Buy and Buy categories. Nine out of 12 analysts covering the stock rate it as a Strong Buy.
One additional analyst gives TSM a Buy rating. Strong Buy recommendations make up 75% of all analyst opinions on the stock.
Buy ratings account for 8.3% of total recommendations. The remaining analysts provide neutral or negative views.
CNBC’s Jim Cramer praised the company during recent market commentary. He called Taiwan Semiconductor a “national treasure” while discussing the stock.
Cramer highlighted the company’s financial strength compared to other entities. He stated TSM’s balance sheet surpasses that of the US government.
The TV host believed the stock should have gained more after Oracle’s quarterly results. He noted Taiwan Semi was “in the mix” but didn’t rise as much as expected.
Earnings Estimates Remain Steady
Analysts maintained their earnings projections for TSMC over the past month. The Zacks Consensus Estimate for the current year holds at $9.83 per share.
This unchanged forecast reflects steady analyst confidence in the company. The lack of estimate revisions suggests stable business expectations.
Zacks Research assigned TSM a #3 Hold rating based on these factors. The rating system considers earnings estimate changes along with other metrics.
The Hold rating indicates the stock may perform in line with broader markets. This contrasts with the more bullish Wall Street analyst recommendations.
TSM shares gained 0.79% during Monday’s trading session. The stock has attracted attention from major technology companies.
Dominance in Advanced Chip Manufacturing
Taiwan Semiconductor stands as one of only two companies capable of consistent advanced chip production. Samsung represents the other major player with similar capabilities.
Both companies can manufacture chips using 2-nanometer technology. They maintain high production yields for external customers.
Major technology companies rely on TSMC for their chip needs. Apple, NVIDIA, and AMD count among the company’s key clients.
This customer base provides TSMC with stable revenue streams. The relationships demonstrate confidence in the company’s manufacturing capabilities.
Cramer previously discussed the company’s financial position in early September. He emphasized that TSMC doesn’t require additional funding for operations.
The host noted the company’s strong balance sheet eliminates financing concerns. He suggested government assistance would only be needed in extreme geopolitical scenarios.
The semiconductor industry continues to face supply chain challenges. Taiwan’s location makes it strategically important for global chip production.
TSMC’s manufacturing facilities produce chips for numerous applications. These range from smartphones to artificial intelligence systems.
The company’s advanced manufacturing processes set it apart from competitors. Few companies can match its technical capabilities and production scale.
Wall Street’s positive outlook reflects confidence in TSMC’s market position. Analysts see value in the company’s technological leadership and customer relationships.
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